EC BUDGET 2006
Letter from Ed Balls MP, Economic Secretary,
HM Treasury to the Chairman
Preliminary Draft Amending Budget No 6 to the
2006 EC Budget (PDAB 06/2006), together with its Amending Letter
will reduce the level of funding required from Member States in
2006 by €7,374 million (£5,053 million). This reduces
the UK's gross contribution to the 2006 EC Budget, after taking
account of the abatement, by €1,248 million (£855 million).
I am submitting this letter alongside the Explanatory
Memorandum (EM) on the Amending Budget, which provides further
detail and explanation of the budget sources that have not been
used.
Regrettably it has not been possible to take
account of the Committees' views in advance of the Council vote
on the PDAB 06/2006 and its Amending Letter. The proposal was
produced only on 30 October 2006 and the Council vote was taken
on 30 November 2006, before the documents were deposited with
Parliament. The proposal was put forward quickly because the Finnish
Presidency wished to reduce the level of Member State funding
as soon as possible, as a prompt return would be to the benefit
of all Member States. Using the current Bank of England repo rate
the interest payable on the UK share is £111,000 per day,
so repayment in January rather than February would save the UK
taxpayer up to £3.3 million.
I regret that this was necessary but given that
the return of unused funds is routine and in the UK's interest,
I hope that the Committees will understand my reasons for supporting
the PDAB 06/2006. The Committee clerks have been alerted to this
issue.
6 December 2006
|
